While seven of the ten major trailer categories posted month-over-month gains, the sequential 32% drop in dry van orders was significant enough to pull the total industry results into the red.
According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, expectations for the Class 8 and trailer production volumes have been trimmed for 2020, and expectations of recovery starting in 2021 have been tempered. Additionally, current order softness and excessive inventory building in the medium-duty sector contributed to forecast reductions in the next
Before accounting for cancellations, new orders of 21,100 trailers were off 43% month-over-month and 54% below last year.
ACT Research For-Hire Trucking Index surged in September, but capacity rebalancing process may be underway
The latest release of ACT’s For-Hire Trucking Index, with September data, showed an even stronger surge than July, with the Volume Index up to 59.6 (SA), from 47.6 in August. The September Pricing Index rebounded as well, if to a lesser degree, rising to 52.2 (SA), from 47.1 in August.
Preliminary used Class 8 volumes (same dealer sales) fell 5% month-over-month in September, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Additionally, the report indicated that longer-term comparisons yielded a 17% decline compared to September 2018, as well as a year-to-date drop of 19%, the 11th consecutive contraction for both time period comparisons.
According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, the key risk to all vehicle market forecasts, and the U.S. economy broadly, remains the trade war with China, ACT says.
New U.S. trailer orders of 21,600 were up 44% month-over-month, and after accounting for cancellations, net orders of 18,600 hit their third sequential increase in ten months, rising 73% from August, but down 68% compared to September of 2018.